Posted by arlan on December 24, 2007 at 07:21:58:
Did you say you have $120,000 equity in your current home? If so, I would sell the house and build a 1,500’ home debt free. Then you would still have the rental income cash flow and no mortgage on your personal residence. You would be set for life.
I sold my home in 1992 and used the equity from it and my wife’s income for 1 year and built a home debt free. I sure have not regretted not having a house payment for the last 15 years.
And no, I would never borrow on my house at 5-6% to invest in the stock market.
Debt freedom is good.
build my house with line of credit - Posted by Robert Decell
Posted by Robert Decell on December 22, 2007 at 17:05:49:
I have about 120k in my house and another 100k in my rentals. I am thinking about selling my house, take out a 100k line of credit on my rentals and build a 300k house for 240k. I can build this house for $80 sq. ft. myself. I would have a small 30k note that I would set up on a 15 year payout. Yes I would reduce my cashflow from rentals but my reduced house payment, which is currently $1.5k monthly and the savings on interest would more than compensate. I wonder if this is a wise move. Any advice would be helpful. Thank you